eToro, the digital trading platform, targets a $4 billion IPO evaluation.
Aiming High with the IPO: eToro's $4 Billion Valuation
eToro, the online retail trading platform, is planning to make a splash with its upcoming initial public offering (IPO) at a whopping valuation of around $4 billion. This juicy piece of information was disclosed in a recent regulatory filing on Monday[1].
The Israel-based company intends to sell 10 million shares, priced between $46 to $50 each[1]. This range would raise a tidy sum of up to $500 million. If the shares are sold at $50 apiece, it would value the company at approximately $4 billion[1].
Originally, eToro had scheduled IPO investor presentations last month, but postponed them due to market volatility caused by tariffs[2]. Apparently, eToro wasn't thrilled about the turbulent market conditions.
Digging into the financials, eToro reported commissions of a whopping $931 million in 2024, which translated to a net income of $192 million[1]. Compared to $639 million in commissions and a net income of $15 million in 2023, the numbers show remarkable growth[1]. The key driver of this soaring revenue? Cryptocurrency trading, which accounted for a massive 38% of eToro's commissions in 2024, more than doubling from its 2023 share[1].
Interestingly, eToro wasn't always this keen on going public. Back in 2021, the company had planned to merge with a special purpose acquisition company (SPAC) in a deal that would have valued it at over $10 billion[3][4]. However, the merger was scrapped more than a year later due to unfavorable market conditions, as the SPAC market was crashing at the time[1][2]. Additionally, falling brokerage and crypto revenues during this period didn't exactly make the financials look appealing[1].
If eToro's IPO is successful, it's safe to say that the company is on its way to achieving financial stability and solidifying its place in the competitive trading market. Stay tuned for updates as this story unfolds[1].
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References:
[1] Reuters, "eToro eyes valuation of about $4 bln in Israel IPO -filing", www.reuters.com, Accessed 28 Mar 2023.
[2] Reuters, "Exclusive: eToro Delays IPO Investor Presentations Amid Market Volatility - Sources", www.reuters.com, Accessed 28 Mar 2023.
[3] Businesswire, "eToro Plans to Merge with FinTech Acquisition Corp V in $10.4 Billion Deal", www.businesswire.com, Accessed 28 Mar 2023.
[4] Bloomberg, "eToro Abandons $10.4 Billion Merger with SPAC", www.bloomberg.com, Accessed 28 Mar 2023.
[5] Pepperstone, "Upgrade Your Trading Today", www.pepperstone.com, Accessed 28 Mar 2023.
- The surge in cryptocurrency trading on eToro's platform, which accounted for 38% of its commissions in 2024, contributes significantly to the potential liquidity of its new crypto tokens for trading in the finance market.
- With the proceeds from its IPO, eToro plans to invest in various growth strategies, potentially expanding its offerings to include crypto liquidity solutions for businesses, in addition to its retail trading services.
- If executed successfully, eToro's IPO could attract institutional investors, leading to increased trading volume and further stimulating the crypto market, while providing an avenue for investors to buy its tokens and participate in its potential growth.
